Question:

A company has five hundred workers. The management has created a structure in which each worker has a clearly defined role and responsibility. Identify the type of organisation described above. State any three of its features.

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A functional organisation structure is ideal for companies that require specialization and a clear hierarchy of responsibilities.
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Solution and Explanation

The type of organisation described above is
Functional Organisation. In a functional organisation structure, employees are grouped based on their roles or specialized functions within the company. Each worker has a clearly defined responsibility and reports to a specific manager or supervisor.
Three features of a functional organisation:

  • Specialization: Employees are grouped into departments based on their specialized roles or functions, such as marketing, finance, HR, etc.

  • Clear Hierarchy: There is a well-defined chain of command where each worker reports to a supervisor or department head.

  • Efficiency: Since workers specialize in specific tasks, functional organisations tend to be efficient in terms of task completion and productivity.
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